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PARAPARAUMU COLLEGE

Risk Management for

School Business Managers

Preparing for Changing Conditions: From Compliance to Strategic Resilience

60-Minute Workshop | 15 July 2026 Presented by: Diane Bradley, Business Manager

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Today's Agenda

Introduction and objectives

Risk, risk management and the School Business Manager’s role

The core risk framework and risk tools

Risk appetite and maturity

Risk categories

What’s on the horizon?

School Business Manager Risk Checklist

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01

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Introduction &

Objectives

Setting the scene

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Diane Bradley

  • Chartered Accountant
  • Business Manager at Paraparaumu College
  • Board Secretary
  • 1500 students; 170 staff
  • Previous roles: Chief Financial Officer / Project Manager / Business Change

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Why am I here and why do I care about risk management?

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Learning Objectives

1

Understand the New Zealand legal and regulatory risk framework (WorkSafe NZ, HSWA 2015, MOE)

2

Apply ISO 31000 risk management principles to your school context

3

Assess your school's risk maturity and identify priority gaps

4

Develop practical risk management strategies across key domains and with a focus on what’s on the horizon

5

Build a personalised risk action plan to take back to your school

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Risk, risk management and the School Business Manager’s role

The basics of risk and the part we play

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What is risk and risk management?

Risk - The effect of uncertainty on objectives

  • Possibility that something will happen to impact on your school’s ability to achieve its goals
  • Downside Risk - of bad things happening (failure to prevent student injury)
  • Upside Risk - missed opportunities (failure to take advantage of AI appropriately)

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Why is risk management important in a school environment?

Robust risk management is critical for:

  • Legal compliance and duty of care
  • Protecting the learning environment for students
  • Safeguarding school assets and public funds
  • Protecting the schools reputation and community trust
  • Helping decision makers make informed and confident decisions

Risk Management - Is about managing uncertainty so our schools can thrive

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The risk landscape for schools

Regulatory and Legal

Health and Safety at Work Act 2015 Privacy Act 2020

Education and Training Act 2020 Crown Entities Act 2004

Employment Relations Act 2000 Human Rights Act 1993

Education (School Boards) Regulations 2000

Financial Accountability

Ministry of Education funding

Annual audit

Payroll compliance

Fraud exposure

Cybersecurity

People and Community

Staff wellbeing

Child safety

Community trust

Reputational exposure

Infrastructure

Building compliance

Deferred maintenance

Insurance

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What role do / should School Business Managers play in risk management?

  • School Business Managers and other key support staff are uniquely positioned and well qualified to spearhead risk management in our schools
  • We have unparalleled visibility across a range of areas where risks and opportunities are presented
  • Our role is increasingly strategic, not just operational and firefighting
  • Our role is evolving with Boards and Principals increasingly looking to us not just to ensure compliance, but to provide strategic risk insights

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A hazard on its own does not a risk make

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Where is your school placed for managing risks?

  • Accident or Injury and Incident Register

  • Hazard Register

  • Comprehensive Risk Register

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The Core

Framework and key risk management tools

WorkSafe NZ and ISO 31000:

the foundations of risk management

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WorkSafe NZ — The Regulatory Context

WorkSafe New Zealand is New Zealand's primary workplace health and safety regulator. For schools, it has direct authority under the Health and Safety at Work Act 2015 (HSWA).

Proactive Engagement

WorkSafe expects PCBUs (schools) to proactively identify and manage risks — not just respond to incidents

Notifiable Events

Schools must notify WorkSafe of serious injuries, illness, or incidents (near misses) within 24 hours

Good Faith Defence

Schools demonstrating documented, systematic risk management are better protected legally

Officer Accountability

Principals and Board members as 'officers' must exercise due diligence — ignorance is not a defence

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ISO 31000 — The International Risk Management Framework

Core Principles

  • Integrated into all organisational activities
  • Structured and comprehensive approach
  • Customised to your school context
  • Inclusive of all stakeholders
  • Dynamic — responsive to change
  • Based on best available information
  • Human and cultural factors considered

The Risk Management Process

1

Establish Context

2

Risk Identification

3

Risk Analysis

4

Risk Evaluation

5

Risk Treatment

6

Monitor & Review

7

Communicate & Consult

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Four key things you need to manage risks in a school

  1. Standard way of identifying risks across all categories

  1. Risk assessment matrix

- The likelihood and impact determines the initial risk rating

- The risk rating determines the required actions

  1. Controls and required actions determine the residual risk rating

  1. Risk register to bring it all together

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  1. Identifying risks - having a standard risk statement
  • Cause > Event > Effect
  • Vague risks (or hazards) like “cyber security” aren’t helpful
  • There is a risk that <event> occurs, caused by <cause>, leading to <impact>

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  1. Identifying risks - examples
  • There is a risk of serious injury or death caused by unvetted contractors on site leading to WorkSafe NZ prosecution and Board liability
  • There is a risk of a large, unfunded and ongoing deficit caused by a significantly lower than forecast international student roll leading to staffing cuts and Ministry intervention
  • There is a risk of deepfake videos of teachers making their way onto a student-led TikTok account caused by malicious AI content leading to loss of community trust, reduced enrolments, low staff morale and staff resignations
  • There is a risk of a ransomware attack caused by insufficient staff training on phishing, leading to a total loss of financial records and school-wide operational shutdown

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2. Assessing risks - The Risk Assessment Matrix

Using the Matrix

Low

Monitor, annual review

Medium

Documented controls required

High

Urgent treatment plan needed

Extreme

Immediate Board escalation

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2. Assessing risks — likelihood × impact

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2. Assessing risks — likelihood × impact

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3. Controls and Actions - then re-rate the remaining risk

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4. Risk register - pulls all the information together

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04

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Risk Appetite

& Maturity

How much risk should your school accept?

How mature is your risk management?

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Understanding Risk Appetite

Risk Appetite

The amount and type of risk your school is prepared to accept in pursuit of its strategic objectives. Set by the Board.

Risk Tolerance

The acceptable variation around your risk appetite — the 'boundaries' within which risk management operates day to day.

Risk Capacity

The maximum amount of risk your school could absorb before it threatens its ability to continue operating.

The Board sets risk appetite. The SBM operationalises it and reports against it.

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Risk Management Maturity Model

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Questions to think about — Rate Your School's Risk Maturity

1. Does your school have a formal, documented risk register?

Response options: Yes / Partial / No

2. When did the Board last review the risk register?

Response options: Within 6 months / 12 months / Longer / Never

3. Do you have documented business continuity plans?

Response options: For all critical functions / Some / None

4. Are risk management responsibilities clearly assigned to individuals?

Response options: Yes, documented / Informal / No

5. Does risk management inform your school's strategic planning?

Response options: Always / Sometimes / Rarely

Discuss: What level are you at overall? What's your biggest gap?

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Health and Safety

Risk

HSWA 2015: Your obligations

and practical application

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HSWA 2015 — Key Obligations for Schools

The School as PCBU

  • Provide and maintain a healthy and safe work environment for staff, students and visitors
  • Provide safe plant, equipment, and systems of work
  • Ensure safe use, handling, and storage of plant, structures, and substances
  • Provide adequate welfare facilities
  • Monitor workers' health and workplace conditions
  • Provide health & safety information, training, and supervision

Officers (Principal, Board Members)

  • Exercise due diligence to ensure PCBU obligations are met
  • Acquire and keep up to date with H&S knowledge
  • Understand school operations and H&S hazards/risks
  • Ensure adequate resources for H&S
  • Verify school has processes to identify and manage risks
  • Verify school has processes to receive worker input on H&S

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Managing H&S Risks — The Hierarchy of Controls

Elimination

Remove the hazard entirely

Substitution

Replace with something safer

Isolation

Separate people from the hazard

Engineering

Controls

Physical safeguards

Administrative

Controls

Policies, training, procedures

PPE

Last resort — personal protective equipment

More Effective

Less Effective

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Financial Risk

Management

Protecting your school's financial

health and public accountability

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Types of Financial Risk in Schools

Budget Risk

  • Unexpected cost increases
  • Over-reliance on supplementary funding eg International Students
  • Enrolment decline impacting operational grants

Cash Flow Risk

  • Timing mismatches between income and expenditure
  • Major capital projects depleting reserves
  • Late payment of MOE grants

Fraud & Misappropriation

  • Inadequate segregation of duties
  • Insufficient oversight of delegated spending
  • Cyber fraud / business email compromise
  • Vulnerabilities in the digital payment landscape

Audit & Compliance

  • Failure to meet Office of the Auditor-General requirements
  • Significant negative audit findings
  • Non-compliance with Financial Reporting Standards

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Financial Controls & Governance

Internal Controls

  • Dual authorisation for payments above threshold
  • Segregation of duties (who requests ≠ who approves ≠ who reconciles)
  • Documented delegations of financial authority
  • Regular bank reconciliation and review by non-signatory
  • Annual independent audit preparation

Board Governance

  • Board reviews monthly financial reporting
  • Risk register includes financial risks
  • Investment and reserves policy in place
  • Conflicts of interest register maintained
  • Auditor engagement managed by Board, not SBM

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Reputational

Risk

Protecting your school's standing

in the community and beyond

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Managing Reputational Risk

Sources of Reputational Risk

  • Social media incidents (staff, students, parents)
  • Serious H&S incidents making local news
  • Privacy breaches (Privacy Act 2020)
  • ERO adverse inspection findings made public
  • Staff conduct issues or employment disputes
  • Financial mismanagement disclosed publicly
  • Complaints not managed well

Crisis Communications — The 3 Rules

1

Speed

Acknowledge within 1–2 hours. 'We are aware and investigating' is better than silence.

2

Transparency

Don't hide facts that will emerge later. Partial truth often damages more than full disclosure.

3

Empathy

Lead with care for people affected — not defence of the school's position.

Note: Involve Principal and Board Presiding Member before any public statements.

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08

SECTION

Operational Risk

& Business Continuity

Keeping your school running

when things go wrong

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Operational Risk — Key Categories

IT & Cybersecurity

  • Ransomware / cyberattack
  • School management system (SMS) failure
  • CCTV and door access failures
  • Cloud service outage

Key Person Dependency

  • SBM or Principal sudden absence
  • Critical skills held by one person
  • Payroll knowledge concentrated
  • No documented succession plans

Supply Chain

  • Contractor failure during capital project
  • Cleaning / maintenance provider withdrawal
  • Catering vendor non-compliance
  • Uniform supplier delays

Data & Privacy

  • Student data breach
  • Staff records compromise
  • Third-party software collecting data
  • Inadequate data retention/disposal

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Business Continuity Planning (BCP)

1

Identify Critical Functions

Payroll, student enrolment, emergency communications, data access, H&S systems

2

Set Recovery Time Objectives

For each critical function: how long can it be unavailable? What data can be lost?

3

Identify Dependencies

People, systems, external providers, data and documents needed for each function

4

Develop Recovery Strategies

Manual workarounds, backup systems, mutual aid agreements, emergency contacts

5

Document & Communicate

Written BCP accessible offline; key staff trained; Board informed and approved

6

Test & Review

Annual tabletop exercise; review after any incident or major change

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TAKE-AWAY ACTIVITY — Business Continuity Scenario

Scenario: The Ransomware Attack

Monday morning. Your school's administration network is locked. A ransomware message demands payment. Your Student Management System, payroll system, financial system and all shared drives are inaccessible. It is 3 days before the end of the pay period. 85 staff are waiting to be paid.

First 2 hours

Who do you call first? What do you NOT do? (Hint: don't pay the ransom!)

Payroll solution

How do you ensure 85 staff are paid on time with no system access?

Communication

Who needs to be told, and what? Parents? Staff? MOE? Media?

Prevention

What 3 things would have reduced the impact of this attack?

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09

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Property Risk

& Infrastructure

Managing your school's physical

assets and built environment

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Property Risk & Infrastructure Management

Building and Infrastructure Compliance

Building Warrant of Fitness (BWOF). Asbestos management. Electrical testing. Managing contractors on site.

MOE Property Framework

MOE retains title to school buildings. Schools manage property through the 10-Year Property Plan (10YPP). The SBM is typically the key contact for the 10YPP — ensure it is current and realistic.

Insurance

Schools carry cover through the MOE's property insurance programme. Review scope annually. Contents insurance and public liability may require separate school-funded cover — check your policy.

Deferred Maintenance Risk

Deferred maintenance creates compounding risk: higher future costs, H&S exposure, and building deterioration. Document all known defects and include in risk register with estimated remediation costs.

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What’s on the horizon?

What should we be thinking about?

Keeping ahead of developments

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Changes on the horizon - what are the risks?

AI

Poses a range of risks including academic integrity, data privacy, potential to amplify biases including cultural and gender, impacts for recruitment and retention, changing skill sets needed

Increasing number of students with complex learning and behavioural needs

This impacts school environments and spaces, attendance, increased support needs and potentially staff and student safety, staffing numbers and costs associated with that, impacts on other students ability to learn

Curriculum change fatigue and overload

School staff could experience workload strain and potential burnout driven by significant policy shifts and widespread curriculum changes, impacts on student learning

Climate vulnerability and infrastructure risks

Increase in number and severity of weather events could put infrastructure at risk with an increased chance of school closures and facilities needing to be used as community hubs when weather/climate events occur

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Changes on the horizon - what are the risks?

Legislative Change

Education and Training (System Reform) Amendment Bill

Legislative Change

Health and Safety at Work Amendment Bill

Legislative Change

Employment Leave Bill

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So, just to finish, here’s a new risk…………

  • Accelerated and multiple curriculum resets cause acute teacher fatigue, resulting in high attrition rates and recruitment difficulties
  • Inherent risk: High. Likelihood Possible / Impact Major
  • Controls: Allocate more TA support hours where needed to alleviate pressure; target and prioritise PD funds to where needed to support; monitor staff wellbeing through survey and identify key people risk
  • Residual risk: Medium. Likelihood Unlikely / Impact Major
  • Action/Monitoring: Monitor staff turnover rates; Principal reports on staff wellbeing to Board; PLD uptake monitored and targeted as needed; one on one support for key people

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The School Business Manager

Risk Checklist

Your practical guide to risk

readiness across all domains

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School Business Manager — Risk Readiness Checklist

Framework

  • Risk register maintained and reviewed by Board (at least annually)
  • Risk appetite statement approved by Board
  • Risk management policy in place and risk management processes are being used

H&S

  • HSWA 2015 obligations understood by officers
  • Hazard identification process documented
  • Notifiable event procedure in place

Financial

  • Delegations of financial authority documented
  • Segregation of duties in place
  • Fraud policy and whistleblower process available

Reputation

  • Social media policy for staff in place
  • Crisis communications protocol documented
  • Privacy breach response process defined

Operations

  • BCP documented for critical school functions
  • IT/cybersecurity plan including offline backups
  • Key person dependency risks identified

Property

  • Building Warrant of Fitness (BWOF)
  • Contractors on site are well managed
  • 10YPP current and submitted
  • Insurance reviewed annually for adequacy

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Your Risk Management Action Plan

What will you do when you get back to school?

Next Week

  • Share one risk insight from today with your Principal
  • Check when your risk register was last reviewed by the Board
  • Confirm you have a documented fraud prevention procedure

Next Month

  • Complete the SBM Risk Readiness Checklist for your school
  • Schedule a BCP tabletop exercise with your senior leadership team
  • Review your H&S incident reporting process — is it fit for purpose?

Next Term

  • Present a risk matrix and appetite statement to your Board for endorsement
  • Update or create your school's risk register using today's frameworks
  • Complete your 10YPP review and prepare your deferred maintenance list

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Key Takeaways

1

Risk management is a strategic function — not just a compliance exercise

2

The SBM is uniquely positioned to lead risk culture across the school

3

Financial controls protect your school, your Board, and your reputation

4

A tested BCP is worth more than a perfect BCP that has never been reviewed

5

Fast pace of change means we need to keep scanning; be aware; be prepared to advise and support on changes that may impact your school

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Key Resources & References

WorkSafe NZ — Education Sector

H&S guidance specific to schools, including worker participation, risk management tools

Ministry of Education — School Finance

Financial management guidance for Boards, audit resources, property framework

National Cyber Security Centre — Schools Cybersecurity

Practical cybersecurity advice, incident reporting, ransomware response guidance

Office of the Privacy Commissioner

Privacy Act 2020 guidance, breach notification requirements

Standards NZ — ISO 31000:2025

The international risk management standard (purchasable)

NZ School Boards Association - GovHub

Governance resources, policy templates, Board training for risk oversight

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Thank You

Questions & Discussion

Diane Bradley can be contacted at: brd@paraparaumucollege.school.nz